The Forex Noob

So I’m looking for a Forex Broker. I’ve played with a few demos, six, and have found a platform that works with my mind and know that I am interested in not only trading in currencies but also gold.

I’ve found choosing a Forex Broker more challenging than choosing my online broker. There are more variables that can be manipulated and therefore cost you money in Forex. Spreads and how most forex brokers get paid differ between brokers and currencies. Some forex brokers have a trading desk manned with people who actually place your orders. Apparently some are unethical and will hold your order if their position is opposite yours or trade against you costing you money.

Some unethical forex brokers reportedly skew quotes to their favor and manipulate their charts so that your position is negatively effected.

Scary!

There are ECN, Electronic Communication Network, brokers that utilize computers not people to fulfill your orders thereby guaranteeing you a fair trade. But does it?

I understand that an ECN broker is the only way to go but some nonECN brokers are highly rated by satisfied customers (we’ll talk about this in the near future).

Other things to look at in a forex broker are payment/withdrawal methods, Customer Service and accreditation.

One forex broker I was interested in only sends withdrawals via paper checks and will only send four per month. If you want a fifth they’ll charge you for it. Others will transfer money electronically with no limitations.

Some brokers make it easy to make a deposit with bank wire, credit card or Paypal, one I wanted to test uses bank wire but charges $20. Other payment methods are Paypal like services that I am unfamiliar with.

The key to choosing a forex broker, do your research and a lot of it.

I’ll name a few brokers here in the near future and share what I’ve found. I’ve been waiting 3 days for a customer service response from one, not a good sign.

Thanks for your time,

Jeff, the Forex Noob

I’m a total noob when it comes to Forex. But I’m interested in learning and while doing so figured I’d share what I discover.

The first thing I’ve found is that the world of Forex seems to be littered with crooks. There are Forex brokers who will trade against their clients, people selling Forex systems and software that will never live up to their hype or are simply scams.

A bit about me, in my youth I had dreams of becoming a player in arbitrage. I entered collage ready to earn a degree in Finance only to find that it boring. Thankfully I found relief in my Marketing classes and eventually earned B.A.s in both Finance and Marketing.

The love of the markets never left me but I couldn’t see myself living with charts and figures all day every day. Marketing and advertising allowed me to use a creative side that I find more pleasurable. And so I set my financial dreams aside and enjoyed a career in media, Radio and Publishing with a dabbling in Interactive.

Then one day while searching for extra income opportunities particular ones available from home for my wife and I stumbled upon Forex Trading. I fell in love immediately. My arbitrage dream leapt from a high up shelf deep within my memory and took control.

I’m excited, but cautious.

My intentions are:

1)      to make a lot of money in Forex (really I’ll be happy adding a little to our monthly income)

2)      not get scammed, if I lose my money I want it to be due to my trading mistakes.

3)      Share what I learn to help other Forex Noobs avoid the pitfalls of the Forex world and prosper.

A promise I will make from the start is that I will have no financial tie with any products, web sites, brokers, etc. reviewed on Forex Noob unless that relationship is fully disclosed. Due to the growing number of JV and affiliate programs on the internet you can never be sure if the product reviewer is getting paid for their praise or not. Here at Forex Noob you can be assured that I will honestly report my beliefs. If I get to the point where I am offered a fee for anything it will be disclosed to you.

Fair ‘nough?

Happy learning and profitable trading to all.

Jeff, the Forex Noob